Omnitech Engineering Raises ₹174.6 Crore from Anchor Investors Ahead of ₹583 Crore IPO
Omnitech Engineering has raised over ₹174 crore from anchor investors on Tuesday, a day before the opening of its initial public offering. The Rajkot-based manufacturer of precision-engineered components finalized allocations at the upper end of the price band, signaling strong institutional interest ahead of its market debut.Anchor Investors Subscribe at ₹227 Per Share
According to a circular uploaded on the BSE website, the company allocated 76,91,629 equity shares to anchor investors at ₹227 per share, aggregating to approximately ₹174.6 crore.Among the participants were leading domestic and global institutions including ICICI Prudential Mutual Fund, Nippon India Mutual Fund, WhiteOak Capital Mutual Fund, Ashoka India Equity Investment Trust Plc, Malabar India Fund, Edelweiss Mutual Fund, and Allianz Global Investors.
Out of the total anchor allocation, 54.42 percent comprising 41,84,928 shares worth nearly ₹95 crore was allotted to five domestic mutual funds across eight schemes.
IPO Details: Price Band, Issue Size and Structure
The ₹583 crore IPO of Omnitech Engineering will open for public subscription on February 25 and close on February 27. The price band has been fixed at ₹216 to ₹227 per share, valuing the company at over ₹2,800 crore at the upper end.The issue consists of a fresh issue of equity shares worth up to ₹418 crore and an Offer For Sale component valued at ₹165 crore by promoter Udaykumar Arun Kumar Parekh.
The company has earmarked 50 percent of the issue size for qualified institutional buyers, 35 percent for retail investors, and 15 percent for non-institutional investors.
Omnitech Engineering is scheduled to list on the stock exchanges on March 5. The IPO is being managed by Equirus Capital and ICICI Securities.
Use of Proceeds and Business Profile
Proceeds from the fresh issue will be deployed towards repayment of debt, setting up two new manufacturing facilities, meeting capital expenditure requirements, and for general corporate purposes.Omnitech Engineering manufactures high-precision engineered components and caters to global customers across sectors including energy, motion control and automation, industrial equipment systems, and diversified industrial applications.
Its clientele includes Halliburton Energy Services, Suzlon, Oshkosh Aerotech, Weatherford, Lufkin Industries, Oilgear, Donaldson Company, PUSH Industries, and Bharat Aerospace Metals.
Competitive Landscape
The company will compete with listed peers such as Azad Engineering, Unimech Aerospace and Manufacturing, PTC Industries, Dynamatic Technologies, and MTAR Technologies in the precision engineering and aerospace components segment.With anchor backing in place and subscription opening on February 25, Omnitech Engineering now moves into the public bidding phase of its IPO journey.
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